Q: Hello everyone;
I need to have fixed (Bond) portion in my portfolio, which currently resides in hi interest savings account. This is primarily because I do not understand effect on bonds by market forces such as interest rates, etc and what optimum term should be. iShare core ETFs seem to make sense. They are as follows: XQB (75% of fixed portion, 8.6 yr avg term), XSQ (15% of fixed portion, 3 yr avg term), XSH (10% of fixed portion, 3 yr avg term). I intend to keep it for long term. Please comment on suitability and timing.
I need to have fixed (Bond) portion in my portfolio, which currently resides in hi interest savings account. This is primarily because I do not understand effect on bonds by market forces such as interest rates, etc and what optimum term should be. iShare core ETFs seem to make sense. They are as follows: XQB (75% of fixed portion, 8.6 yr avg term), XSQ (15% of fixed portion, 3 yr avg term), XSH (10% of fixed portion, 3 yr avg term). I intend to keep it for long term. Please comment on suitability and timing.